Madras High Court
P.Sambathu vs The General Manager on 15 December, 2021
W.P.No.26674 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:15.12.2021
Coram
The Hon'ble Mr. Justice V.PARTHIBAN
W.P.No.26674 of 2021
1.P.Sambathu
2.S.Mohan
3.G.Ramesh
4.K.Leelavathi
5.S.Kandasamy
6.A.Abdul Nazeer
7.A.Margandan
8.G.Chandrasekaran
9.P.Gnanam
10.S.Perumal ...Petitioners
Vs.
1.The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram-III) Ltd,
Thiruvannamalai Region,
Bye Pass Road, Vengikkal,
Thiruvannamalai District- 606 604.
2.The Administrator,
Tamil Nadu State Transport corporation,
Employees Pension Fund Trust,
2, Pallavan Salai, Chennai- 600 002. ...Respondents
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W.P.No.26674 of 2021
PRAYER: Petition filed under Article 226 of the Constitution of India
praying to issue a writ of Mandamus directing the respondents to pay
interest to the petitioner @ 10% for the belated payment of gratuity,
leave salary and commutation of pension amount.
For Petitioners .. Mr.S.T.Varadarajulu
For Respondents .. Mr.K.Kathiresan
Standing Counsel for R1
Mr.C.S.K.Sathish for R2
ORDER
In the present writ petition, the prayer is for the grant of
interest for the belated settlement of retirement benefits like P.F,
Gratuity, and encashment of Earned Leave/sick leave etc. As a
matter of fact, this Court, both Single Judges and Division Benches
dealt with such prayer earlier for payment of interest for the belated
settlement of retirement benefits to the retired transport employees.
2.The Courts have been granting payment of interest @ 4% or
6% as the case may be. In some cases, the Division Bench of this
Court has granted 6% interest and in few other cases this Court has
granted 4% interest. On the whole, this Court finds that, there is no
consensus as to whether 4% or 6% to be granted in such matters
where the employees have been settled their retirement benefits
belatedly due to resource crunch faced by the State Corporation.
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W.P.No.26674 of 2021
3. Today, when this batch of writ petitions have been taken up
for hearing, there was a clamour for claiming higher interest of 6
percent and it was also opposed by the counsels who are
representing the corporations. According to them in a recent decision
of the learned Judge of this Court in W.P.No.23229 of 2021 dated
28.10.2021, after taking into account the various earlier orders, has
granted only 4 percent interest. Per contra, the learned counsel
Mr.S.T.Varadarajulu would rely on a decision of the Division Bench of
this Court in W.A.(MD).No.1349 & 1350 of 2021 dated 12.07.2021,
wherein there was a direction to pay 6% interest. A learned Judge of
this Court following the above Division Bench Judgment in Writ
Appeal No.1349 & 1350 of 2021, in a batch of Writ Petitions in
W.P.Nos.15636, 15640, 15647, 15651, 15654 & 15656 of 2021 dated
29.07.2021 has once again granted 6% interest for the delayed
payments. One other learned Judge of this Court vide order dated
02.07.2021 in W.P.No.10553 of 2021 has ordered 6% interest.
Therefore, learned counsels appearing on behalf of the petitioners
would pray for 6% interest as majority of the judges have granted
the same.
4.At this learned counsels representing the Corporations
uniformly submitted that already the Corporations have suffered
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W.P.No.26674 of 2021
huge losses due to Covid-19 situation prevailing in State for more
than 20 months. The Corporations would be unable to mobilize and
come up with funds to pay 6% interest. The Corporations are already
facing severe financial strain, and unable to sustain itself and any
further increase in the percentage of interest to be paid to the
employees, it would result in severe financial burden on the
corporation, which the Corporations would be unable to bear. The
Corporations would also have to take into consideration the serving
employees and the retiring employees also in future. Therefore, a
passionate request has been made before this Court for grant of 4%
interest which should be reasonable and fair to compensate belated
payments made to the retired employees.
5. In consideration of the request emanating from the learned
Standing counsels for the Corporations, which appear to this Court to
be fair and reasonable considering the weak financial position of the
Corporations, this Court persuaded the learned counsels appearing
for the petitioners to accept 4% interest. All the counsels who are
representing the parties today have uniformly accepted 4% interest
to be payable on the belated payments made to the petitioners.
During the course of argument it is also agreed by all the counsels of
the corporation that the 4% interest payable would be settled in one
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W.P.No.26674 of 2021
lump-sum, if 8 weeks time is granted to the Corporation.
6.In view of the consensus being reached by the parties, these
writ petitions are disposed of with the following directions;
The Corporation is directed to pay 4% interest to
all the employees who have been settled belatedly their
retirement benefits within a period of 8 weeks from the
receipt of copy of order of this Court. In case, some of
the employees who have not been settled their portion of
the retirement benefits as such are also entitled to be
paid 4% interest till they receive the actual retirement
benefits in full.
Those payments would also carry 4% till the date it
is fully released by the corporation. The interest of 4%
would cover the period of 8 weeks from the date of
receipt of copy of this order.
Any further default of the payments by the
corporation, the interest would be enhanced to 6 percent
after the expiry of 8 weeks of period of time and such
percentage would become payable till the entire amounts
are settled to the employees concerned.
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W.P.No.26674 of 2021
7.Therefore, the present Writ Petition stands disposed of
accordingly. No costs.
15.12.2021
tri/mrm
Index:Yes/No
Internet:Yes
To
1.The General Manager,
Tamil Nadu State Transport
Corporation (Villupuram-III) Ltd,
Thiruvannamalai Region,
Bye Pass Road, Vengikkal,
Thiruvannamalai District- 606 604.
2.The Administrator,
Tamil Nadu State Transport corporation,
Employees Pension Fund Trust,
2, Pallavan Salai, Chennai- 600 002.
https://www.mhc.tn.gov.in/judis
W.P.No.26674 of 2021
V.PARTHIBAN,J.
tri/mrm
W.P.No.26674 of 2021
15.12.2021
https://www.mhc.tn.gov.in/judis
